Genesis Global Trading CEO Michael Moro on Wednesday said Three Arrows Capital was the large counterparty that failed to meet a large margin call in June, forcing liquidation of the related collateral.
Since then, said Moro in a series of tweets, Genesis has worked with its parent company, Digital Currency Group, to continue to isolate risk, with DCG assuming certain liabilities of Genesis related to Three Arrows Capital, a crypto hedge fund that has been ordered by British Virgin Islands court to liquidate. DCG also owns CoinDesk.
Last week, CoinDesk reported that Genesis was facing hundreds of millions of dollars in losses due in part to its exposure to Three Arrows Capital and also noted the deep pockets of DCG was likely to help ease the blow.
Moro said Wednesday the loans to Three Arrows Capital, which is also known as 3AC, had a weighted average margin requirement of 80%. Once that level was breached and no additional margin was posted, Genesis sold the collateral and hedged further downside.
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